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Andrej Babiš, the self-proclaimed tycoon who secured victory in last month's parliamentary vote, has declined to offload his vast corporate assets, while asserting he will resolve a ethical dilemma that could prevent him from taking the position of head of government.

Position on Corporate Empire

Babiš, whose political movement emerged victorious in the October election but lacked a parliamentary majority, declared in a online statement that he will not sell his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.

“I have consistently said I will not sell Agrofert. I have consistently said I will address the ethical issue in compliance with Czech and EU regulations,” the billionaire commented. “This is not like selling a pastry in a bakeshop.”

President's Requirement

The Czech president, Petr Pavel, stated that the elderly political figure must publicly explain how he will remove ethical conflicts arising from his corporate dealings before assuming the role of prime minister.

The national charter “clearly mandates the head of state to take into account the possible emergence of a ethical issue and the possibilities for its resolution” when selecting government ministers, the presidential administration noted.

The president “expects clarity in what precise manner Andrej Babiš will fulfil his constitutional and legal obligations”, the announcement added, noting that Pavel was ready to appoint Babiš as premier “immediately” once the issue was settled.

Corporate Activities and Regulatory Concerns

Babiš's several hundred companies, primarily under the Agrofert umbrella, function in the nation and other regional countries, receiving millions of euros in domestic and European farming and other grants, as well as public contracts.

Under Czech law, government ministers are barred from obtaining public aid or agreements. The ethics watchdog Transparency International has indicated that to avoid a ethical breach, Babiš must either sell, refuse public contracts, or stay out of government.

Past Tenure and Current Intentions

Babiš affirmed he would “abide by the regulations” if appointed as prime minister, but did not want to explain how in advance because the issue was “an highly personal and personal matter for me, and the media will always question me anyway”.

During his initial tenure as premier, from 2017 to 2021, Babiš faced several court cases and an European inquiry over possible conflicts of interest. He temporarily moved his assets into fiduciary arrangements, while retaining certain control over them.

A court and the EU executive both determined that this was insufficient. Babiš confirmed recently that he was again the exclusive proprietor of Agrofert and insisted he was “taking steps” to prevent a conflict of interest, but refused to disclose specifics.

Governing Agreement and Foreign Policy Consequences

The billionaire populist has signed a coalition agreement with two minor right-leaning groups, the far-right, pro-Russian SPD, which has advocated a referendum on leaving the EU, and the Motorists for Themselves, which has mainly campaigned against the EU’s environmental policy.

The new government, if confirmed, is likely to bolster the populist bloc in the region and might challenge western support for Ukraine – although Babiš has called Ukraine’s leader, Volodymyr Zelenskyy, to confirm of the nation's backing.

Pavel, who as head of state shares responsibility for foreign policy, also requested that the coalition’s programme add a declaration on the government’s position on Russia’s war in Ukraine, with a commitment to meeting alliance duties.

The head of state has earlier said he would not endorse any ministerial nominees who might question the Czech Republic’s EU and Nato commitments, a requirement that the ultra-conservative party has said it will satisfy by proposing independent technocrats.